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    Fundamentals

    Introduction

    Metrics are the quantitative measures used for assessing, comparing, and tracking performance. These have been used in accounting, operations and performance analysis.

    A group of metrics are used to build a dashboard that the management or analysts review on a periodical basis to maintain performance assessments, make business strategies and build opinions on them. Metrics come in a wide range of categories with industry standards and proprietary models usually supervising their use. However, individual cases and scenarios guide the use of suited metrics.

    Understanding Metrics

    1. The dashboard prepared by the analysts or management where the metrics will be used is known as key performance indicators (KPIs).
    2. Metrics majorly rely on in the financial analysis of companies by both internal and external stakeholders.
    3. The stakeholders shall set the business goals first and, then, decide upon the best metrics to measure the performance of business goals.
    4. Some of the metrics that are used to measure the country’s economy are GDP, inflation, and unemployment rate.
    Index

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